Aames Investment Corp (1282552) SEC Filing 10-Q Quarterly report for the period ending Friday, March 31, 2006

Aames Investment Corp

CIK: 1282552

Exhibit 99.1



Investment  Corporation




Aames Investment Corporation Reports Fourth Quarter Financial Results and Updates on Corporate Changes


Company to Convert to C Corp. Status Through Corporate Restructuring and Creation of Captive REIT


Wholesale Cost Reductions Begun with Closure of 2 Centers and Elimination of 100 Positions


Core EPS for the Quarter of $0.02, GAAP EPS Loss of $0.07


Los Angeles, California, March 27, 2006 – Aames Investment Corporation (NYSE: AIC)

, a nationwide subprime mortgage lender today announced full financial results for the fourth quarter of 2005 and provided an update on recently announced corporate changes. Diluted core EPS for the quarter equaled $0.02, while diluted net loss per common share for the December 2005 quarter equaled $0.07 on a GAAP basis. During the quarter, the Company recorded a pretax mark-to-market derivative loss under FASB 133 of $5.3 million, representing a diluted non-core loss per share of $0.09.


Fourth Quarter 2005 Highlights


                                          Net cost to originate of 1.75%, compared to 2.08% in the September 2005 quarter;

                                          Total loan production of $1.9 billion, with the Retail Channel accounting for 43% of total;

                                          Taxable portfolio net interest margin of 2.75%;

                                          Weighted average interest rate of 7.81% on the quarter’s production, up 40 basis points from the third quarter of 2005.


Mr. A. Jay Meyerson, Chairman and CEO of Aames, commented, “The fourth quarter results highlight our commitment to improving our efficiency, further growing our retail originations and to increasing the coupons on our loan production. We were pleased to achieve a 1.75% net cost to originate ratio, well below where we started the year, and to have our retail channel contribute over 40% of total production. We also made progress during the quarter in raising rates on our production, a trend that continues in the first quarter of 2006. Notwithstanding these improvements, the mortgage banking business faced a sustained challenge to sell loans at a profitable level in the fourth quarter. While whole loan sale pricing decreased across the board during the quarter, prices paid for second lien and selected other loans in particular decreased quickly and impacted our net gain rate. We remain cautious regarding whole loan sales premiums moving into early 2006, and will focus on making significant reductions in our cost to originate ratio in response to this outlook.”



The following information was filed by Aames Investment Corp on Tuesday, March 28, 2006 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Aames Investment Corp's Definitive Proxy Statement (Form DEF 14A) filed after their 2006 10-K Annual Report includes:

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SEC Filing Tools
CIK: 1282552
Form Type: 10-Q Quarterly Report
Accession Number: 0001104659-06-033407
Submitted to the SEC: Wed May 10 2006 5:05:16 PM EST
Accepted by the SEC: Wed May 10 2006
Period: Friday, March 31, 2006
Industry: Real Estate Investment Trusts

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